Target CorporationTGT looks to capitalize on opportunities in the evolving grocery space by increasing focus on online shopping. Target, together with Shipt, has announced plans to start same-day delivery of its more than 55,000 groceries, electronics, toys and other assortments in Connecticut. Through this startup, Shipt will be accessible for the first time to the Connecticut community.
These latest services will be effective Aug 14 in Stamford, Aug 16 in Hartford, and Aug 23 in New Haven and Bridgeport, located in Connecticut. Notably, the launch of same-day delivery through Shipt in these areas covers about two-thirds of the state's access to this leading online platform.
Members on the Shipt platform will be able to easily browse, search as well as shop the in-store products online, following the service launch. Additionally, it allows members to note preferences, select a one-hour delivery window and more. Also, Shipt is likely to add above 200 new shoppers across the state to the existing team, who will be responsible for the complete execution of an order. Markedly, new members who sign up on Shipt before Aug 23 will be able to avail a yearly membership for $49 (regularly $99). The annual membership will have free, unlimited delivery on orders above $35.
Moving ahead, Target intends to offer same-day delivery of groceries, essentials, home, electronics as well as other products from most of its stores through Shipt by the holiday season of 2018. Also, this service can be accessible by roughly 65% of U.S. households across 180 markets by the end of the calendar year. In 2019, same-day delivery is expected to cover all the company's major product assortments.
Apart from Target, other leading players like Amazon.com, Inc. AMZN and Walmart Inc. WMT are coming up with innovative ways to enhance their delivery services. Also, The Kroger Co. KR has been making investments to boost its grocery offerings and e-commerce presence. The company's Ship service offers free shipping for orders more than $35 for its private-label and household essentials.
Target had also undertaken various initiatives to enhance its presence in the changing retail ecosystem, thus satisfying customers' needs conveniently. The company has also teamed up with popular online grocery delivery services like Instacart. Moreover, it rolled out Target Restock program that allows customers to restock their shipping box with essential items online and get them delivered at door steps by the next business day for a nominal charge.
Target also acquired a transportation technology company - Grand Junction - to expand its supply chain and improve delivery capabilities. Grand Junction provides a platform that allows retailers, distributors and third-party logistics providers to manage local deliveries through a network of over 700 carriers. Target's other endeavors includes a free two-day shipping on items purchased on Target.com on a minimum spending of $35 or on payment via REDcard. Drive Up, an app-based service, is another initiative by Target to expedite the shopping process. The service allows customers to place orders using the Target app and have them delivered to their cars.
These laudable initiatives have aided this Zacks Rank #2 (Buy) stock to surge 47.6% in a year, while the industry rallied 41.4%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.